Freelance Income Calculator
Estimate your effective hourly rate as a freelancer by entering project fees, hours, and business expenses. Compare W-2 vs 1099 net earnings.
What this calculator does
- 100% free, no signup — calculations run instantly in your browser.
- Results include a plain-English interpretation of what the numbers mean for your situation.
- All math happens locally — your data never leaves your device.
Freelance Project & Business Details
Income Analysis
How this calculation works
Freelance income is rarely consistent month to month. This calculator helps you understand your true hourly rate after expenses, so you can set minimums that actually cover your costs.
Many freelancers forget to factor in non-billable time — client calls, admin, marketing, invoicing. A good rule of thumb: billable hours are 60-70% of total working hours. Keep that in mind when setting your target rate.
How this Freelance Income Calculator works — 2026 guide
Freelance income looks great on paper until you subtract self-employment tax, business expenses, and the unpaid hours you spend finding clients. This 2026 freelance income calculator turns project fees and hours into your true effective rate: revenue ÷ billable hours, minus business expenses, with a built-in W-2 vs 1099 comparison. As a 1099 contractor you owe both halves of FICA — 15.3% on net earnings versus 7.65% for W-2 employees — but you can deduct business expenses under IRS Schedule SE rules, making the math very different from an employee paycheck.
How to use it in 3 steps
- Enter the project fee (or annual freelance income) and the hours you actually work.
- Add business expenses — software, marketing, travel, home office — to find your net effective rate.
- Toggle the W-2 vs 1099 view to see how self-employment tax changes your take-home.
Who this is for
Freelancers setting rates, 1099 contractors planning quarterly estimated taxes, and side-hustlers deciding whether to stay independent. Use it with the [take home pay estimator](/tools/take-home-pay-estimator/) for the W-2 baseline and the [hourly to salary calculator](/tools/hourly-salary-calculator/) to see what an equivalent staff role would pay.
Data sources & authoritative references
This calculator is built on official U.S. rules and published statistics. Key sources:
Frequently Asked Questions
How do I calculate my effective freelance hourly rate?
Should I use this to set my rates?
How does 1099 vs W-2 affect take-home?
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Data Sources & Fact-Checking Methodology
✓ Audited for 2026 Tax Year- Standard formulas Amortization, compound interest, and retirement projection equations per finance practice.
- Public reference rates Savings/investment assumptions stated as planning estimates; no live market rates.
- Internal editorial Calculators reviewed by the AllMoneyCalc editorial team before publication.
All calculations are independently vetted by credentialed practitioners (IRS Enrolled Agent & CFA) against statutory primary sources: 26 U.S. Code § 1(j) (Tax Cuts and Jobs Act rates), IRS Rev. Proc. 2025-32, 29 CFR Part 541 (FLSA labor rules), and CFPB Regulation Z. Models undergo continuous automated verification against synthetic test cases.
Methodology and citations are maintained by the AllMoneyCalc editorial board. Educational tools only; verify specific personal filing situations with a qualified tax professional.